The BSC Framework ensures that the remuneration of these representatives and supervisors are also tied to key performance indicators that are non-sales related. The variable income of these representatives and supervisors will be affected if they fail to provide suitable product recommendations or do not make proper disclosure of material information to clients.

As such, in reviewing the performance of their representatives and supervisors under the BSC Framework,banks, life insurance companies and licensed financial adviser firms are expected to contact their clients to obtain feedback about the latter’s experiences on their recent purchases of investment or insurance products.

The Association of Banks in Singapore (ABS), Life Insurance Association of Singapore (LIA) and Association of Financial Advisers Singapore (AFAS) today jointly urged consumers to be forthcoming in giving feedback on their financial adviser representatives when evaluation of their recent experience in purchasing investment or insurance products is sought.

This comes as banks, life insurance companies and licensed financial adviser firms implement a new requirement under the Balanced Scorecard Framework (BSC Framework) this year.

The BSC Framework ensures that the remuneration of these representatives and supervisors are also tied to key performance indicators that are non-sales related. The variable income of these representatives and supervisors will be affected if they fail to provide suitable product recommendations or do not make proper disclosure of material information to clients.

As such, in reviewing the performance of their representatives and supervisors under the BSC Framework,banks, life insurance companies and licensed financial adviser firms are expected to contact their clients to obtain feedback about the latter’s experiences on their recent purchases of investment or insurance products.

The enhancements in the BSC Framework are designed to ensure that banks, life insurance companies and licensed financial adviser firms, through their representatives, continue to provide quality advice and make appropriate investment recommendations.

Banks, life insurance companies and licensed financial adviser firms may contact their clients by way of telephone calls, written or e-surveys, or through face-to-face meetings to obtain such feedback.

The BSC Framework was one of the policy proposals of a Consultation Paper released by the Monetary Authority of Singapore (MAS) on 2 October 2014 on Legislative Amendments to the Financial Advisers Act and Insurance Act in order to implement the policy proposals under the Financial Advisory Industry Review (FAIR). This follows a Consultation Paper on FAIR released by MAS on 5 March 2013 and subsequent response by MAS on 30 September 2013.

Said Mrs Ong-Ang Ai Boon, Director of ABS: “We seek the co-operation of clients to respond to banks when such feedback is sought. This will help to enhance the standards of professionalism and proper conduct, which will ultimately benefit all clients.”

Said Ms Pauline Lim, Executive Director of LIA Singapore: “Based on feedback shared, the life insurance industry in Singapore will implement additional efforts to improve quality of service as we continue to help individuals better meet their long-term protection, savings, investment, and other financial needs. This is our commitment and we hope to work closely with all parties involved to constantly elevate industry standards, further reinforcing Singapore’s position as a regional financial powerhouse.”

Said Mr Vincent Ee, President of AFAS: “We urge consumers not to overlook their financial advisory firms’ attempts to seek their feedback, as this would prevent the industry from effectively implementing the objectives of the Balanced Scorecard Framework. With consumers’ cooperation, we can further help the industry to increase its professionalism and competency level.”